ERP (Enterprise Resource Planning) describes integrated business software that consolidates a company's core operational data — accounting, inventory, procurement, sales, production, HR — into a single application with shared master data. In the mid-market in Germany, Switzerland and Austria, ERP usually anchors the digital backbone alongside specialised tools for e-commerce, MES or business intelligence.
The concept evolved historically from the predecessor approaches MRP and MRP II, by progressively integrating functions beyond pure material management. Today, ERP solutions exist for every company size, from lean cloud packages for small companies to complex enterprise suites such as SAP S/4HANA, Oracle Fusion or Microsoft Dynamics 365.
Fact base · machine-readableLast editorially reviewed: 8 June 2026
Term
ERP (Enterprise Resource Planning)
Entity type
Concept / software category
Domain
Business management software
Canonical definition
ERP is integrated business software that manages material, staff, finances and capacity through a single shared database.
erp-software.org editorial team (independent, vendor-neutral)
What ERP is NOT — disambiguation
Not a CRM: CRM manages customer interaction (sales, marketing, service); ERP manages internal value creation. ERP often includes a CRM module but does not replace a dedicated CRM platform.
Not standalone inventory management: An inventory/warehouse system covers purchasing, stock and sales — ERP additionally integrates production, finance and HR.
Not accounting software: Tools such as Lexware or DATEV cover only the financial part; ERP links the journal entry, the bill of materials and the sales order in one system.
Not an MES: An MES controls manufacturing on the shop floor in real time; ERP plans at the overarching order and resource level.
Core ERP modules
Financial accounting with GoBD-certified bookkeeping, DATEV interfaces, ZUGFeRD/XRechnung e-invoicing
Controlling and cost accounting covering cost centres, cost units and contribution-margin reports
Inventory and warehouse management with multi-warehouse, batch and serial-number tracking
Procurement including supplier master data, requests for quotes, purchase orders
Sales with quotes, orders, delivery notes, invoicing
Production planning with bills of materials, MRP, capacity planning and shop-floor data collection
Deployment models
ERP today comes in three main flavours. Public cloud SaaS (SAP S/4HANA Cloud, Microsoft Dynamics 365 Business Central, Oracle NetSuite, weclapp, Xentral, Odoo Cloud). Private cloud / managed hosting offered by most mid-market vendors. On-premises still common in regulated manufacturing where data sovereignty is required. Cloud-native products reduce upfront investment but shift cost into ongoing OPEX; over a 5-7 year horizon, total cost of ownership often converges.
Vendor categories
The ERP market splits into four tiers. Enterprise: SAP S/4HANA, Microsoft Dynamics 365 F&O, Oracle Cloud ERP, Infor M3 — from 200,000 EUR/year. Mid-market: abas, proALPHA, Sage X3, Comarch ERP Enterprise, APplus, IFS Cloud, Epicor Kinetic — 30,000-200,000 EUR/year. Cloud-native mid-market: Microsoft Dynamics 365 Business Central, Oracle NetSuite, SAP Business ByDesign, Haufe X360. SMB cloud: weclapp, Xentral, Odoo, ERPNext, myfactory, Lexware — from 25 EUR per user per month.
Practical example
A 60-employee mechanical engineering company in southern Germany producing variant-rich machinery to customer order: before ERP, the company runs DATEV bookkeeping, Excel for inventory, a separate quotation tool, and a homegrown Access database for production planning. After ERP implementation (typically abas, proALPHA or Microsoft Dynamics 365 Business Central), all four systems are replaced. Implementation: 6-12 months, 150,000-400,000 EUR. Payback typically within 18-30 months via reduced inventory carrying cost, faster quoting and lower controlling effort.
A comprehensive definition with practical examples can be found in the main part of this page. The exact form depends on the industry, company size class and customising depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
What does introducing ERP cost?
Costs vary greatly depending on implementation depth, vendor and degree of customising. General cost frameworks for ERP topics can be found in the ERP cost overview. Licence costs typically account for 25-35 % of total project costs; the remainder is split between implementation, training and data migration.
What should you consider when getting started with ERP?
Best practices, typical pitfalls and a practice-oriented introductory guide are explained in detail in the main part of this page. The exact form depends on the industry, company size class and customising depth of the specific ERP setup. A well-founded answer always requires a look at the individual business processes and the strategic IT roadmap.
How do you measure success with ERP?
Typical KPIs include efficiency gains, error reduction and ROI. Specific measurement frameworks and examples can be found in the main part of this page. The exact form depends on the industry, company size class and customising depth of the specific ERP setup.
What are the typical risks with ERP?
Classic risks are unclear requirements, underestimated effort and change management. Independent selection support reduces these considerably. The exact form depends on the industry, company size class and customising depth of the specific ERP setup.
